DEO_Joseph_Bell - Florida Department of Environmental

Northeast Florida Brownfields
Workshop
Brownfields Redevelopment Incentives
Presentation Overview
Brownfield Redevelopment Act
Economic Incentives
Other Brownfield Redevelopment Incentives
Q&A
Brownfield Redevelopment Act
• In 1997, the Florida Legislature enacted the Brownfields Redevelopment
Act, creating a process for the designation of "Brownfield areas" by local
governments.
• Under Florida law, "Brownfield sites" may be designated "Brownfield
areas."
• Key aspects of the Act that encourage redevelopment include, but are
not limited to the following:
– Liability protections; and
– Economic incentives, such as tax credits and refunds.
•
Sections 376.77-.875, Florida Statutes
Brownfield Redevelopment Act Continued
Brownfields Definition:
• A brownfield area is defined by statute as “…a
contiguous area of one or more brownfield sites,
some of which may not be contaminated, and
which has been designated by a local government
by resolution …”.
• A brownfield site is defined by statute as “…real
property, the expansion, redevelopment, or reuse of
which may be complicated by actual or perceived
environmental contamination.”
•
Sections 288.107 and 376.79.875, Florida Statutes
Florida Brownfields Program
Brownfields Redevelopment Act
The two primary goals of the Brownfields program are
site cleanup and economic development.
Florida Department of Environmental Protection
Responsible for site rehabilitation and cleanup
Enterprise Florida (EFI)
Directed to market the Brownfields Redevelopment
Program
State Brownfields Redevelopment Incentives
• Financial Incentives
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Brownfield Redevelopment Bonus (288.107 F.S.)
Voluntary Cleanup Tax Credit (376.30781 F.S.)
Sales Tax Credit on building materials (212.08 F.S.)
Brownfield Loan Guarantee Program (376.86 F.S.)
• Regulatory Benefits
– Cleanup Liability Protection (376.82 F.S.)
• Other Financial and Regulatory Benefits
– Brownfield Redevelopment Economic Incentives
(376.84 F.S. & 380.0657 F.S.)
– Expedited Permitting (403.973 F.S. and 380.0657)
– Workforce Training – (Workforce Florida)
Brownfield Redevelopment Bonus
Performance based
Up to $2,500 in tax refunds per new Florida job created
– Taxes are refunded only after businesses have met their capital investment, job
creation, and wage thresholds
– Refunds are paid over a minimum four year period to ensure jobs are maintained
Brownfield Location
– Brownfield site/area designation
– Execute a Brownfield Site Rehabilitation Agreement(BSRA) with the Department of
Environmental Protection (DEP) or local government delegated by DEP
Local Input
– Provides local support (cash, Ad valorem tax abatement, reduce lease rate, etc.)*
– The municipality may request a waiver of the local financial support match*
* Only applicable to eligible QTI with Brownfield Bonus
Brownfield Redevelopment Bonus
• Two Ways To Qualify
– Be a qualified target industry business under the QTI
Program – QTI/Brownfield Bonus
• Applicable Statutes: 288.106 and 288.107, F.S.
– “Stand-alone Brownfield” -- Applicable Statute:
288.107, F.S.
Brownfield Redevelopment Bonus
QTI Program
Provides a base QTI tax refund of $3,000 per net new fulltime-equivalent Florida job created
• This QTI refund amount can increase to:
– $6,000 per job in Enterprise Zone or Rural County;
– $2,500 per job for locating in a designated Brownfield Area;
– An additional $1,000 for paying 150% of average wage; or
– $2,000 per job for paying 200% of average wage.
• A QTI project located in a designated Brownfield Area and
paying 200% average wage is eligible for a refund of $10,500
per job award.
Brownfield Redevelopment Bonus
“QTI Program Continued”
• Must apply to Enterprise Florida prior to making a decision to
locate or expand in Florida
Applicant must:
– Be in a target industry
• Must serve multi-state and/or international markets
• Must be able to locate in other states
• Must not be a retail establishment
– Demonstrate that the tax refund will make a material difference in
the company’s decision to locate or expand in the community
– Create at least 10 net new full-time equivalent Florida jobs and, if an
expansion project, increase employment by at least 10 percent
(whichever is greater)
– Pay at least 115% of average private sector wage.
Brownfield Redevelopment Bonus
“Stand Alone”
Key Qualification Criteria
1) Demonstrate a fixed capital investment of at least $2M
2) Create at least 10 new Florida full-time jobs with
benefits
• Typically for projects that do not meet QTI thresholds
• Projects are not in the State’s target industry sector (288.106 F.S.)
Brownfield Redevelopment Bonus
“Stand Alone”
• Application should be submitted before the decision has been
made to locate in a brownfield
• Discretionary incentive -- not an entitlement
• As an incentive, the Bonus must play a role in the decision of a
company to locate or expand in a brownfield area
• Ideally, the need for a Bonus incentive should be established, and
the Bonus application approved, before any commitment is made
to the project
Other Brownfields Redevelopment
Incentives
• Building Materials Sales Tax Refund
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20% Low to Moderate Income
Encourages Affordable and Workforce Housing
FDOR forms DR-26RP, DR-26, Form DR-26S.
A copy of the building permit.
Certificate from building inspector that improvements are substantially
completed.
• Brownfields Loan Guarantee
– 50% of Primary Lender’s Loan
– 75% for Affordable Housing and Health Care Facilities
– The guarantee does not extend to permanent refinancing or 'take-out'
lenders
Key changes to the Brownfields
Redevelopment Bonus Program
 Brownfield Site Rehabilitation Agreement(BSRA) in place
for the Proposed Brownfield site/area or abutting property
 $2M Vs. $500,000 Capital Investment Requirement
 Remove the need for the local support resolution
 State provides up to $2,500 per new job
Contacts
 Joseph Bell, Brownfields Redevelopment Program
(407) 956-5622
[email protected]
 Teresa Booeshaghi, Voluntary Cleanup Tax Credit Program
(850) 245-8933
[email protected]
 Robert DuCasse, DOR
(850) 717-6476
[email protected]
 Brook Pace, Brownfield Area Loan Guarantee Program
(850) 922-4715
[email protected]